Despite concerns related to the spread of the COVID-19 delta variant having of late been reflected in the stock markets, the major U.S. stock indexes closed at record highs on July 9. And considering the market’s expectation of another strong earnings season, we think it is wise to bet now on quality stocks Stanley Black & Decker (SKW), ArcelorMittal (NYSE:MT), POSCO (NYSE:PKX), and Darden Restaurants (NYSE:DRI). These names possess quality financials and solid growth prospects. Let’s take a closer look. A stock market rally in the first half of the year, driven primarily by strong corporate earnings and an economic recovery, led to lofty valuations of most stocks. While the spread of the COVID-19 delta variant is of concern to investors, the low interest rate environment and optimism about a solid economic recovery have been driving the stock markets higher.
Ahead of the second quarter earnings season, which is scheduled to start this week, the three major United States’ stock market indexes rallied to record closing highs on July 9 as the financial and other economically focused sectors grabbed significant investor attention. Furthermore, according to Fundstrat's Tom Lee, the S&P 500 could surge 9% to 4,700 by the end of 2021.
Against this favorable backdrop, we think it is wise to bet on fundamentally strong stocks Stanley Black & Decker, Inc. (SWK), ArcelorMittal (MT), POSCO (PKX), and Darden Restaurants, Inc. (DRI) that are all expected to thrive this month and beyond. These four stocks have been rated Strong Buy in our POWR Ratings system and have significant dominance in their respective industries.